Samsung Securities' Personal Pension Reserves Surpass 11 Trillion Won... 41% Increase

Balanced Growth Rates of DC, IRP, and Pension Savings

Samsung Securities' combined individual pension reserves, including Defined Contribution (DC), Individual Retirement Pension (IRP), and pension savings, have surpassed 11 trillion won.

On the 25th, Samsung Securities announced that the size of individual pension reserves increased from about 7.9 trillion won at the end of 2022 to 11.2 trillion won at the end of 2023, recording an annual growth rate of 41.1%. In particular, the annual growth rates for DC, IRP, and pension savings were evenly strong at 40.2%, 40.8%, and 42.6%, respectively.

Individual pensions refer to pensions where individual customers directly manage their portfolios, generally encompassing DC, IRP, and pension savings. Recently, as individual customers' investment demand has increased, there is a trend of shifting from the Defined Benefit (DB) system to the DC system, where individuals manage their own funds. The mandatory transfer of retirement benefits to IRP and the tax benefits of IRP have also increased the share of the IRP system.

According to the Financial Supervisory Service’s retirement pension comparison disclosure site, the balance of retirement pensions in the securities industry shows that the DB system reserves increased only 30.0% over three years, from 33.6 trillion won at the end of 2020 to 43.7 trillion won at the end of 2023. During the same period, the DC size grew from 10.5 trillion won to 20.8 trillion won, and the IRP size surged from 7.5 trillion won to 22.3 trillion won, marking increases of 97.9% and 195.1%, respectively.

Samsung Securities attributed the rapid growth of individual pension reserves to customer-centric pension services. The company provides pension management through its official mobile trading service (MTS), mPOP. Additionally, it offers various digital content such as card news and YouTube videos based on analysis of consultations and seminars to identify the needs of pension subscribers. This content is actively used by pension customers for pension asset rebalancing.

Samsung Securities is recognized for changing the landscape of retirement pension fee structures by launching ‘Direct IRP.’ It also offers the ‘3-minute pension’ service, which requires no paperwork or mailing (excluding time for providing personal information and agreeing to terms), and the ‘Pension S-Tok’ service, which allows pension management via KakaoTalk. The company has placed experienced private bankers (PBs) with over 10 years of experience in the Pension Center to provide specialized pension consultations.

Pension returns are also relatively high. In 2023, Samsung Securities’ DC non-guaranteed principal return rate recorded 16.93%, ranking first among the top five securities firms in DC non-guaranteed principal reserves. The IRP non-guaranteed principal return rate also reached 16.64%, securing first place among the top five securities firms in IRP non-guaranteed principal reserves.

Yoo Jeong-hwa, Executive Director and Head of Samsung Securities’ Pension Division, said, "Retirement pensions are a system that looks toward a distant future of over 30 years, aiming to solidly grow retirement assets by providing pension management solutions throughout the pension subscriber’s lifecycle. We will strive to provide the best service and optimal management solutions in 2024 to repay the trust and expectations of our subscribers."

Meanwhile, Samsung Securities is conducting the ‘Pension Together’ event until March 31. During the period, new deposits, retirement fund deposits, transfers of pensions from other companies, and matured Individual Savings Accounts (ISA) deposited into pensions will receive prizes according to the net deposit amount exceeding 3 million won.